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Horse Racing is Essential Factor to Tabcorp-Tatts Merger

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One of the key elements that made the Tabcorp and Tatts merger possible was the large market of horse racing.

Tabcorp recently acquired Tatts Group for USD 4.9 billion. This was big news for the Australian gambling industry as two of the biggest gambling companies prepare for a merger. Tabcorp has announced that the merger will take place in Q3 of 2017 which is subject to shareholder and regulatory board approval. The Tabcorp and Tatts Group merger is worth more than $11 billion

Horse Racing Industry Complements the Merger

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Tabcorp and Tatts Group are advocates of the horse racing industry. Industry experts say that the merger will be a good thing for the local horse racing industry workforce. Horse racing happens to be the 3rd largest industry in the world. Australia’s horse racing industry has a workforce of around 120,000 employees. It ranks among the top 3 in the world by size.

According to Tabcorp’s recent annual report, its ROI in 2016 has totalled to $786.9 million. This includes $331 million in Victoria, $290.8 million in New South Whales, race field fees of $94.8 million, and international contributions and broadcast rights amounting to $70 million.

On the other hand, the Tatts Group made $200 million to the horse racing industry in 2016. The payment of which are in the form of program fees and race information fees that are from Queensland.

Will The Merger Bring Improvements to the Horse Racing Industry?

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The Australian gambling industry is growing every year. It’s a matter of grow bigger or get bigger by joining forces. The issue right now as the merger is almost complete is how Tabcorp and Tatts Group will decide who will be the captain of its ship.

Industry analysts say that Tabcorp CEO David Attenborough is a clear choice to run amalgamated company. Tabcorp has shown excellent operational record in wagering. It is reflected in the relatively higher market share ratings.

Furthermore, Tabcorp covers the larger proportion of the merger’s revenue and cost synergy. Most importantly, Attenborough is a strong advocate of the racing industry. When it was announced that greyhound racing will be banned in Q3 of 2017, Attenborough made it clear that Tabcorp will support horse racing industry and offer more racing-related services.

What’s in Store for Horse Racing Fans?

The horse racing industry is enjoying a great year so far. The Melbourne Cup is underway. The Spring Carnival is an awesome event for horse racing fans. Will the Tabcorp and Tatts merger make Australian horse racing even better? Let us know your thoughts by commenting.

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